'Father of Euro' Knew It Was a Problem Child

A warning that European monetary union wouldn't succeed without fiscal integration.

Baron Lamfalussy, right, saw trouble coming.

Photographer: Dominique Faget/AFP/Getty Images

The obituaries of Baron Alexandre Lamfalussy, the cosmopolitan banker who died May 9, describe him as the “father of the euro.” He led a rather charmed life, fleeing Communist-controlled Hungary as a young man, settling in Belgium, and ultimately becoming general manager of the Bank of International Settlements. A brilliant economist, he was the first president of the European Monetary Institute, the forerunner of the European Central Bank.

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